Published Saturday, June 8, 2002
SHARON
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Says is owed more than $31,000
Herald Business Editor
Unable to reach arbitration terms with Winner Development LLC over more than $31,000 in back fees which MCIDA said it's owed, the agency filed suit against the Sharon company on Friday.
The suit was announced at MCIDA's regular noon board meeting at the Hermitage VFW shortly after the suit was filed at the Mercer County Courthouse.
Charles "Chuck'' Bestwick, chairman of MCIDA, said the board had no choice but to go after the money.
"We are a public entity and we have an obligation to collect on the monies owed us,'' Bestwick said. "It would be particularly unfair for the many, many people over the years who have paid fees.''
Winner Development is owned by James E. Winner who had been seeking public funds to develop the former Westinghouse Electric Corp. plant in Sharon.
He noted the money being sought was public funds. If the agency didn't go after the funds it would be "handing Mr. Winner a gift,'' Bestwick added.
In a dispute that has been broiling for months, MCIDA has said Winner Development is overdue on more than $31,000 in fees MCIDA charged for work in preparing a $7 million grant application.
Winner said he wanted the so-called stadium-fund grant to develop the former defunct plant in Sharon.
In February, Winner dropped attempts to secure the grant, saying he would forge ahead with plans to turn the mostly abandoned plant into a multi-tenant industrial complex.
Winner previously said he's paid about $13,000 in fees to MCIDA and believed the bill was paid in full.
But at last month's MCIDA meeting Winner offered to send the dispute to arbitration. MCIDA agreed to let its solicitors try to set up ground rules for having the matter settled through binding arbitration.
At Friday's meeting Tom Kuster, one of MCIDA's solicitors, said Winner Development's terms for arbitration were unacceptable. He said Winner Development wanted the arbitration without any provisions for fact-finding.
"... there must be a factual determination to resolve the dispute,'' Kuster said.
Winner did not immediately return a phone message left at his Sharon office Friday afternoon.
In other matters, the board:
Bank One is the funding bank for the loan. In breaking down the $3.341 million project, $1.562 million will go for refinancing, $320,000 for renovations and the remainder for new equipment. The company is providing $16,625 toward the project.
The building will offer psychiatric services and a support center on the first floor with five apartments for clients on the second floor. Citizens Bank is the funding bank for the project which is estimated to cost $607,500. Mercer County Behavioral Health is funneling $100,000 in state funds for the project and Community Counseling is providing $7,500 in funds.